Initial costs for a house hack

[Justin Brown]

Hey I was wondering how can you get money for costs associated with closing on a house hacks if your initial contacts such as friends and family aren't interested in giving you money so you can get started in investing.

[Jaron Walling]

@Justin Brown House hacking is a great strategy and good way to get started. When I bought my first property in 2018 it was one of the cheapest properties I walked. It was distressed and had signs of a leaking roof. Shingles blown off, mold, disgusting bathroom, old water heater, etc. It barely qualified for a conventional loan. I put down 3% but the bank knew I had $15k in savings for repairs. Life can throw a wrench in your plans. Don't buy RE without an emergency fund and savings. 

Even buying the cheapest SFH, 2bd, 1b, below market value, with almost nothing down I still needed $15k (roof) + closing cost. That doesn't include the remodeling I'd do in the future while house hacking with my brother. Every dime I collected in rent when back into remodeling or repairs. Projects got completed in steps as I could afford it. Buying RE requires skin in the game regardless of condition or strategy. OPM is hard to find when you're new. Make sacrifices early on and buy a property on your own dime. That's been my experience and my wife and I don't come from money. Cheers.